A Maryland Blog For Title Insurance, Settlement Company News And Information. A place For Consumers, Lenders, Real Estate Professionals And Others To Find, Share Or Read About News And Topics Related To The Title Insurance And Property Settlement Industry. Understanding Quotes, Coverage, Closings, Recording, Property Tax, Discounts, Third Party Fees, Services, Transfers, Risks, Policies, TRID, Closing Disclosure, Loan Estimates And More.

Thursday, May 8, 2014

The Importance of Title Search for Your Real Estate Transaction

What is a title search?

How does it impact your transaction?

It is helpful to understand what a title search is and why you need it done. The information obtained can be accessed remotely in MD via online
public records and by physically going to the court house to
search the public record books. The
first and probably most important aspect of their search is to make sure that
there is no breaks in chain of title, in other words that the ownership has
been transferred correctly through the life of the property and no one else
could potential claim ownership in the property. Abstractors also look for any liens or encumbrances
that are on the property.

So how far
back does the search go?

For a purchase
it is customary for a 60 year search to be completed, as for a refinance
typically most title underwriters only require a one owner search, while some
companies will go for a two owner search to make reasonable efforts to determine the property is free and
clear of encumbrances to title for your protection and the protection of your lender.
Usually, at title search is done by an independent abstractor. The
abstractor’s job is to run a search on your property or the property that you
are looking to purchase. But what
exactly are they looking for and where? An
abstractor or searcher will access public record for the particular county that the property
is located. The abstractor creates the report for the title company
to complete a title exam. It is the
title company’s responsibility to clear any defects in the chain in title or to
clear any unreleased deeds of trusts among other things. The title exam for the title insurance company contains the
information or data that the title company uses to determine the insurable risk of
the title insurance policies for both the lender and the purchaser they intend to bind for coverage.

The world is becoming more digital for real estate title search information gathering.

Access to the
information an abstractor will use for title search data is becoming more readily
available online. We expect and hope
soon there will not be a need to send people to the court house in person to review
any public records. The digital age is
making this task easier and easier every year for anyone to access public
records but the system is not perfect yet. So the importance of a complete title search is essential to providing the protection of the biggest investment that most people will ever
make in their life. Since most people do
not realize that prior owner judgments and liens can attach to the property
that you have just purchased. This is
brief description of what a title search is and why you need one to obtain a
title insurance binder and policy but it is not a complete explanation and
doesn’t cover every detail of the process.
If you have any questions consult a properly licensed title agent or
real estate attorney. In Maryland Excalibur Title and Escrow is
happy to answer your title search and abstract questions and looks forward to
it.